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nikklg [1K]
1 year ago
15

An investment project has annual cash inflows of $4,200, $5,300, $6,100, and $7,400, and a discount rate of 14 percent. If the i

nitial cost is $7,000, the discounted payback period for these cash flows is ________ years. If the initial cost is $10,000, the discounted payback period for these cash flows is_______years. If the initial cost is $13,000, the discounted payback period for these cash flows is_______years. (Round your answers to 2 decimal places. (e.g., 32.16))
Business
1 answer:
Eva8 [605]1 year ago
3 0

Answer:

An investment project has annual cash inflows of $4,200, $5,300, $6,100, and $7,400, and a discount rate of 14 percent. If the initial cost is $7,000, the discounted payback period for these cash flows is ___2_____ years. If the initial cost is $10,000, the discounted payback period for these cash flows is___3____years. If the initial cost is $13,000, the discounted payback period for these cash flows is__4_____years. (Round your answers to 2 decimal places. (e.g., 32.16))

Explanation:

a) Data and Calculations:

Annual cash inflows of

          Cash Inflow     Discount Factor    PV             Running Total

Year 1    $4,200            0.877               $3,683.40     $3,683.40

Year 2   $5,300           0.769                 4,075.70         7,759.10

Year 3   $6,100            0.675                  4,117.50         11,876.60

Year 4  $7,400            0.592                 4,380.80       16,257.40

b) An investment project's discounted payback period is the number of years it takes for an investment to recover its costs.  It is the period when the project's discounted cash inflows equals the project's discounted cash outflows.  It is another version of the payback period that uses discounted cash flows.

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Kiyara (single) is a 50 percent shareholder of Jazz Corporation (an S Corporation). Kiyara does not do any work for Jazz Corp. J
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Answer and Explanation:

a. The computation of Kiyara’s deduction for qualified business income is shown below:-

Kiyara's Share of income is

= 50% × $332,000

= $166,000

Max qualified business deduction is

= 20% × $166,000

= $33,200

b. The computation of Kiyara’s net investment income tax liability is shown below:-

Net investment income tax liability = $166,000 × 3.8%

= $6,308

c. The computation of Kiyara’s self-employment tax liability is shown below:-

Kiyara is not earning Jazz Corp.'s self-employment taxable income because Kiyara is not doing work for Jazz Corp.

Hence, the tax liability for self-employment is 0.

d. The computation of Kiyara’s additional Medicare tax liability is shown below:-

Additional medicare tax liability

= $282,000 - $200,000

= $82,000 × 0.9%

= $738

5 0
2 years ago
Moore’s Inc. will be making lease payments of $3,895.50 for a 10-year period, starting at the end of this year. If the firm uses
labwork [276]

Answer:

PV of lease annuity is $25000

Explanation:

As the paymengt will be made at the end of the year, the annuity is an ordinary annuity. We will calculate the present value of the ordinary annuity using the following formula,

PV Annuity = PMT * [( 1 - (1+r)^-n) / r]

Where,

  • PMT is periodic payment
  • r is discount rate per peiod
  • n is number of periods

Thus,

PV of annuity = 3895.5 * [( 1 - (1+0.09)^-10) / 0.09]

PV of annuity = $24999.985 rounded off to $25000

7 0
1 year ago
Topco, Inc. is a manufacturer of electric fans and other low-tech cooling devices. Joan is the HR director. She is conducting a
RUDIKE [14]

Answer: B) ​subtle discrimination based on secondary characteristics.

Explanation:

There are Primary and Secondary Characteristics of Diversity.

Secondary Characteristics of Diversity are those attributes that can be changed and include but are not limited to, educational background, geographic location, income, marital status, weight, religious beliefs, and work experiences.

The attributes that Bob says he has no problems with are PRIMARY in nature but he seems to have problems with the weight and educational backgrounds of some employees and insinuates that they are less efficient at doing what he does.

This is subtle discrimination and it is based on their secondary attributes.

7 0
1 year ago
A cylindrical part of diameter d is loaded by an axial force p. this causes a stress of pya, where a 5 pd2y4. if the load is kno
raketka [301]

Here is the correct question.

A cylindrical part of diameter d is loaded by an axial force p. this causes a stress of P/A, where A= πd²/4. if the load is known with an uncertainty of ±10 percent, the diameter is known within ±5 percent (tolerances), and the stress that causes failure (strength) is known within ±15 percent, determine the minimum design factor that will guarantee that the part will not fail.

Answer:

the minimum design factor that will guarantee that the part will not fail. = 1.434

Explanation:

Looking at the uncertainty; loss of strength must be raised to \dfrac{1}{0.85} due to the stress that causes the failure (strength)  is known within ±15% uncertainty.

Looking at the uncertainty; the maximum allowable load  must be reduced to \dfrac{1}{1.1} because the load is known with an uncertainty of ±10.

Looking at the uncertainty; the diameter must be raised to \dfrac{1}{0.95}  because the diameter is known within an uncertainty of ±5.

The decrease in the maximum allowable stress can be estimated as:

\sigma' = \dfrac{P'}{A'}

where,

\sigma = stress

P = load

A = cross-sectional area of the cylinder

∴

\sigma' = \dfrac{P'}{\dfrac{\pi}{4}(d')^2}

replacing P' with \dfrac{1}{1.1}P   and d' with \dfrac{1}{0.95}d, we have:

\sigma' = \dfrac{(\dfrac{1}{1.1})\times p }{\dfrac{\pi}{4}(\dfrac{1}{0.95 } d)^2 }

\sigma' =\dfrac{P}{\dfrac{\pi}{4}d^2} (\dfrac{\dfrac{1}{1.1} }{(\dfrac{1}{0.95})^2 }) }

\sigma' =\sigma \times (\dfrac{\dfrac{1}{1.1} }{(\dfrac{1}{0.95})^2 }) }

\sigma' =\sigma \times 0.82045

\dfrac{\sigma' }{\sigma } =0.82045

Thus, the uncertainty in diameter and the load of the allowable stress needs to decrease to 0.82045

Now, the minimum design factor that will ascertain that the part will not fail can be computed as:

n_d = \dfrac{loss  \ of  \ function \  parameter }{maximum \  allowable \ parameter}

where;

the design factor = n_d

n_d =\dfrac{\dfrac{1}{0.85} }{0.82045}

the design factor  n_d = 1.434.

Thus,  the minimum design factor that will guarantee that the part will not fail. = 1.434

7 0
1 year ago
Smithson Company uses a job-order costing system and has two manufacturing departments— Molding and Fabrication. The company pro
vazorg [7]

Answer:

Instructions are below.

Explanation:

1)

<u>a) First, we need to calculate the total estimated overhead:</u>

Total overhead= 1,100,000 + (5*50,000)= 1,350,000

<u>Now, we can determine the overhead rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 1,350,000/50,000

Predetermined manufacturing overhead rate= $27 per machine hour

<u>b) </u>

Job D-75:

Total cost= direct material + direct labor + allocated overhead

Total cost= 700,000 + 360,000 + 27*20,000

Total cost= $1,600,000

Job C-200:

Total cost= 550,000 + 400,000 + 27*30,000

Total cost= $1,760,000

c) Selling price= 150% of manufacturing costs

Job D-75= 1,600,000*1.5= $2,400,000

Job C-200= 1,760,000*1.5= $2,640,000

d) COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS=  0 + (1,600,000 + 1,760,000) - 0

COGS= $3,360,000

<u>2) </u>

<u>a) </u>

Molding= (800,000/20,000) + 5= $45 per machine hour

Assembly= (300,000/30,000) + 5= $15 per machine hour

<u>b) </u>

Job D-75:

Total cost= 700,000 + 360,000 + 45*20,000

Total cost= $$1,960,000

Job C-200:

Total cost= 550,000 + 400,000 + 15*30,000

Total cost= $1,400,000

<u>c) </u>

Job D-75= 1,960,000*1.5= $2,940,000

Job C-200= 1,400,000*1.5= $2,100,000

<u>d)</u> COGS= 0 + (1,960,000 + 1,400,000) + 0

COGS= $3,360,000

4 0
2 years ago
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